Amazon (NASDAQ:AMZN) is set to release Q2 earnings on Tuesday July 26th after the market closes on the heel's of eBay's (NASDAQ:EBAY) announcement last week which was solid (we cover it here at sister-site eBay Strategies).
Wall Street is looking for:
- 33% y/y growth (slowing from 36%)
- Domestic growth is expected to be 45%
- International growth should be 24%
- $9.29B in revenue for Q2
- $375m in pro-forma operating income
William Blair Report Summary
Mark Miller, internet analyst at William Blair, issued a report recently (you can download the full report here) called "More Retailers Struggling to Navigate Amazon's Surging Current". In the report, Miller looks at some of the top brick-and-mortar (B+M) retailers and compares their selection and pricing to Amazon's.
- B+M retailer's websites are not price competitive with their own stores
- Companies that face the largest threat from Amazon: HHGregg (NYSE:HGG), Bed Bath and Beyond (NASDAQ:BBBY), Best Buy (NYSE:BBY), Target (NYSE:TGT), Dicks and Kohls. (NYSE:KSS)
- Of 2400 items half are available on Amazon and at 11% cheaper than competitors
- Amazon's price advantage would persist even if it faced taxes
- Amazon's 3P marketplace is a strategic foundation for this strength
Here are three really interesting tables from the report that show the depth of research and some pretty amazing findings.
Table 1 - Selection comparison (click to enlarge images):
The table above compares the selection of 100 items from competitive stores to Amazon's 1P selection, 3P, etc.
Table 2 - This table compares prices of 100 items to Amazon's 1P and 3P prices:
While Amazon has come a long way, with 50% SKU coverage they still have a lot of work to do, and room to grow, in the dimension of selection. We'll provide detailed analysis of their Q2 results later this week.
Disclosure: I am long Google and Amazon. eBay is an investor in ChannelAdvisor where I am CEO.